Group health benefit plans; sponsoring associations, formation of benefits consortium.

Bill Summary:

Group health benefit plans; sponsoring associations;
formation of benefits consortium.
Provides that sponsoring associations,
including self-funded multiple employer welfare arrangements, may
provide health benefit plans for small employers in the form of a
trust benefit consortium, subject to certain requirements. The bill
includes conditions for qualifying as a sponsoring association, requirements
for the formation of a trust benefits consortium, and provisions
to establish a board of trustees. Under the bill, such trust benefits
consortium is subject to the federal Employee Retirement Income Security
Act of 1974 (ERISA) and U.S. Department of Labor regulations and such
trust shall not include certain words or terms in its name that are
uniquely descriptive of insurance companies or business, and a statement
to this effect is required to be included on the first page of the
health benefit plan documents. A benefits consortium or sponsoring
association is exempt from the requirements of the Virginia Life,
Accident and Sickness Insurance Guaranty Association and exempt from
annual license taxes under the bill.

Bill Patron: Head

Last Action(s):
(House) Left in Commerce and Energy February 15, 2022

Bill Status: